Is a company allowed to permit staff to drive a car that isn’t insured?

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Is a company allowed to permit staff to drive a car that isn’t insured?

My son drove into someone from behind which is his fault while driving a company
owned vehicle. Company wants him to pay for the damage as they say the car isn’t
insured.

Asked on January 27, 2017 under Accident Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Regardles of whether the company could be fined for a lack of coverage, an at-fault driver is liable for all the costs of the accident he caused. As you write, your son is at fault in the accident; therefore, he is liable for all the damage he caused, including to his employer's car. If they had insurance, the insurance might have paid (depending on the type of coverage they had), but if it did, then the insurer could have demanded reimbursement from your son and sued him if they did not receive it (this is called "subrogation," when the insurer claims the amounts it had to pay out due to an at-fault driver). Either way, you son would have to pay.


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